Monday, September 18, 2006

Interventionism Even Penetrates The Divine Microeconomy.

Let's look at how interventionism penetrates the economy to its core, which is - each and every one of us. The act of intervention at the macro level sooner or later affects and alters the market process in a way that prevents the accretion of value in the economic system.

Each act of intervention distorts the message communicated via the language of the economy. It is difficult to discuss a single cause and effect because of the cumulative nature of interventionism. Consequently the effect is best seen as a cumulative response.

For example, greed is a cumulative response that becomes manifest once a behavior becomes recurrent. If that behavior is done only once, the one and only expression of that tendency may be simply a selfish choice. A selfish choice is not far removed (in fact it is merely a subjective act) from a normal human behavior.

Now superimpose on this tendency the cumulative effects of interventionism, for example, the change of purchasing power that results from inflating the money supply. Pushed to get it now since the purchasing power is going to decline also pushes the individual to skew towards a negative expression, namely greed, of an inherently neutral human quality.

This is only a brief and introductory exposition about how intervention not only corrupts the divine economy but it also corrupts the divine microeconomy!

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